Pixel Points Inc

question 75

Essay

Pixel Points Inc. has a single class of shares. As at its year ended December 31, 2020, the company had 1,000,000 shares issued and outstanding. These shares have a book value of $5,000,000 on the balance sheet.
During 2021, Pixel Points repurchased 5% of the issued shares from one of the minority shareholders at a cost of $7 per share. The company held these shares in treasury and later found a buyer for half of these shares at $8 per share. The other shares were sold at $6 to another investor.
Required:
Assume the Pixel Points fallows the guidance in ASPE pertaining to accounting for equity transactions. Record the share transactions using the two-transaction method for treasury shares.

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Definitions:

Ion Channels

Channels for the passage of ions through a membrane; formed by specific membrane proteins.

Plasma Membranes

The plasma membrane is the biological membrane that separates the interior of all cells from the outside environment, controlling the movement of substances in and out of cells.

Ras Proteins

A family of proteins involved in transmitting signals within cells, playing key roles in the regulation of cell division, growth, and differentiation.

G Proteins

A family of proteins that act as molecular switches inside cells, involved in transmitting signals from stimuli outside the cell to its interior.